• Capitaland Mall Trust (CMT) has proposed to acquire the remaining 70% stake in Westgate for S$805.5m. The mode of funding to be determined. Fully debt funded will raise gearing to 36%.
• The mall is well positioned in the heart of Jurong East and poised to reap long-term benefits from the developments around Jurong East.
• Maintain forecasts for now, pending more details on the acquisition. Maintain HOLD with an unchanged DDM-based target price of S$2.21.

Buying the Remaining 70% of Westgate

Capitaland Mall Trust has announced that it has entered into a conditional unit purchase agreement with CMA Singapore Investment and CL JM Pte. Ltd. to acquire the balance of 70% of the units in Infinity Mall Trust which holds Westgate. CMT currently already owns the other 30% of the IMT Units.

Source: CGS-CIMB Research - 27 Aug 2018